How to Raise Your GA Credit Score in 60 Days

GA Credit ScoreRecently lenders have raised their minimum credit score requirements.  For example, most lenders now require a 620 fico score for FHA loansUSDA rural housing has made it harder to qualify with a score below 620.  Even if a lender will allow you to have a score below 620, you will most likely have a much higher rate or have to pay additional discount points to get a loan.  So what are you to do?  How about raising your score.

Credit Scores are made up of:

  • Payment History  — 35%
  • Balances Carried — 30%
  • Credit History      — 15%
  • Mix of Accounts  — 10%
  • Inquiries        — 10%

The two biggest portions are payment history and balances carried.  So pay all of your bills on time from now on and remember, the most recent 6 months weighs the most.  Paying down balances is an easy, effective way to raise credit scores.   Typically you want your balance to be 25% of your high credit limit.
$10,000 available high credit limit = $2,500 or less balance on the card

This brings up another suggestion – If your high balance is $10,000 and you can’t pay your balance to $2,500, why not call your credit card company and ask them to raise your high credit limit.   A lot of times they will!!!

Other Factors to Consider

  • Never close credit accounts.  Pay them to zero, but don’t close them.  If you have a long credit history with a company, closing an account can lower your score dramatically.
  • Personal Inquiries don’t hurt your score.   Find out what is on your credit report by going to annualcreditreport.com.  It is free, but obtaining your scores will cost you money.  You can get one free report per year.
  • If you are paying off a judgment or collection, consult with your loan officer first.  Sometimes paying off collections and judgments will lower your score.  This happens because the activity date will be updated to the current date.  If it was an old collection, it will now appear as if it just happened, thus lowering you score.

One last exciting tool Academy mortgage can use to help you is credit rescoring.  If you are close, meaning you have a 610 fico and you need a 620 or you have a 692 and need a 700, for example, we can run your credit through a simulator.    This will tell us ways in which we can help you bring up your score.  For example, if you pay your credit card down $150 more dollars or that late payment that showed up on your mortgage was an error, so we have it removed.   The process can take up to 2 weeks from start to finish, so call today to find out how we can help.

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